The purchase of Air Europa by Iberia, after the rescue of the first, is taking shape. The airline owned by the Globalia group has formed a new board of directors, after receiving an injection of 475 million from the Government, through the strategic companies rescue fund managed by Sepi. Iberia’s condition to buy Air Europa was precisely that it receive this public money.
The new Council of the airline has been constituted “respecting the provisions of the agreement” for temporary public financial support authorized by the Council of Ministers on November 3. In this, the rescue was linked to the fact that Sepi had a presence on the board of the airlines (with two directors) and a voice in electing the CEO.
The group’s CEO will be agreed between the company and the airline at the next meeting, but there are already two new members on the part of the Sociedad Estatal de Participaciones Industriales: JosÃ © Ã ?? ngel Partearroyo MartÃn, lawyer, current director of Investees in the public holding company and with extensive professional experience also in private companies, and Juan Manuel BujÃa Lorenzo, an aeronautical engineer with a long career in the sector.
On the proposal of Globalia, the board is made up of Juan JosÃ © Hidalgo (chairman), the Group’s general director and Financial Economic Manager, Miguel Ã ?? ngel SÃ¡nchez JimÃ © nez, as member, and the Director of Legal Advice, Ramiro Campos Gallego , as secretary.
One of the pitfalls of the negotiation with Iberia was precisely the state presence on the airline’s board, as the Government does not want to give public money to a company and then there will be layoffs, but if the IAG group company buys Air Europa , restructuring, in the current situation, is almost obligatory.
Air traffic has suffered a brutal crash, unprecedented in history. Many European airlines have received public money, others have gone bankrupt and all are adjusting staff and costs in order to survive this crisis.
Iberia announced the purchase of Air Europa in November 2019 and was offering 1,000 million for the company, but then the pandemic broke out and the operation was blocked, especially because Luis Gallego, current CEO of IAG (before Iberia) and which has been the one who has piloted the entire operation, defended a reduction in the price, given that Air Europa is not worth now what it was worth before.
The Government granted 475 million to the airline, which was in a limited financial situation, through a participating loan for the amount of 240 million euros and an ordinary loan of 235 million.
This Wednesday, Air Europa also held the monthly meeting of the Monitoring Committee, aimed at facilitating compliance, monitoring and control of the execution of the viability plan presented by the company before accessing the financial aid .